What’s New For 2018

  1. The standard deduction was nearly doubled from $6500 to $12,000 for individual filers and from $13,000 to $24,000 for joint filers. But the value of itemized deductions is lessoned. What is best for you?
  2. Two key itemized deductions for individuals have been altered; the state and local property tax paid and the mortgage interest. Now itemization is limited to deducting a total of $10,000 among state and local property, sales, and income taxes paid. The amount of home mortgage debt was capped at $750,000 from $1,000,000 reducing the mortgage interest that can be deducted and the interest from home equity loans and lines of credit are no longer deductable unless they are used to buy, build, or substantially improve the home that secures the loan!  Are you ready?
  3. “Miscellaneous itemized deductions” that were deductible to the extent they exceeded 2% of a taxpayer’s adjusted gross income are gone. What’s this mean for you? It means that Unreimbursed job expenses or work-related expenses an employee pays out of his or her own pocket. They include:
    • work-related travel, transportation, and meal expenses (mileage deductions)
    • union dues
    • depreciation on a computer or cellular telephone your employer requires you to use in your work
    • dues to professional societies
    • education (work-related)
    • home office expenses for part of your home used regularly and exclusively in your work
    • expenses of looking for a new job in your present occupation
    • legal fees related to your job
    • subscriptions to professional journals and trade magazines related to your work
    • tools and supplies used in your work, and
    • work clothes and uniforms (if required and not suitable for everyday use).
    • Expenses you pay for personal investing are also not deductible as a personal itemized deduction  This includes:
      • investment advisory and management fees
      • fees for legal and tax advice related to your investments
      • trustee fees to manage IRAs and other investment accounts, and
      • rental fees for a safe deposit box.

     

    This is just beginning of the changes the new tax laws brought in 2018. Let J/ETax Services help you navigate these changes and insure you the best success for your 2018 tax filing!                                                             Contact us Today!